Risk Management

Risk management is the overall process of identifying, evaluating, controlling or reducing, and accepting risks. It is the general term given to the process of making management decisions about risk that have been identified and analyzed (Wells & Rodrigues, 2004). So what is a risk exactly? A risk is the combination of the probability of a hazard occurring and the severity of its effects. For instance, if I place myself on a high work stand platform to perform a task on an aircraft without fall protection, I would be assuming a great risk. The probability of me falling is about 50%. However, if I do fall the consequences would be severe, perhaps life threatening. I would have essentially risked my well being to be able to perform a certain task on that aircraft. Risk management involves conserving assets and minimizing exposure to losses.
If risk management programs are to be successful, they need to be integrated into the various business functions within the organization. This success is also evident in the military. The U.S. Air Force currently employs the use of Maintenance Resource Management or MRM. It is based on the successful CRM but applied to the aircraft maintenance aspect of operations. It emphasizes the use of teamwork to identify potential risks, assess and properly evaluate those risks. A risk management program usually contains the following elements:
1. A written safety policy statement signed off by the highest ranking person on site
2. Goals and objectives that are integrated into employee evaluations
3. Formal and informal accident reporting systems
4. An impartial review of incident and accident reports
5. A process for prioritizing and addressing hazards
6. A feedback process to notify those who report or identify hazards to reduce and or eliminate them are informed of the outcome
7. A process to continually update and evaluate the risk management program
Maintaining a safe work environment is an important responsibility in not just the aviation industry, but for any workplace. Minimizing the potential risks before accidents happen can lead to a better overall work environment towards the safety of its employees.

Reference: Wells, Alexander T. & Rodrigues, Clarence C. (2004). Commercial Aviation Safety. New York: The McGraw-Hill Companies, Inc.